Can I really not purchase an Xbox One with Microsoft gift card

That’s really odd
The other option could be purchase a gift card (you can do it using the Xbox website or use a third party store like Walmart, Amazon, etc)
And redeem the gift cards in your account.

After that try purchasing the games and pay with Microsoft balance (the gift card)

That's really odd

May I know if you tried to purchase an Xbox gift card and then pre-order the game using Microsoft balance?

If not, please try that. You can purchase the gift card here:

https://www.microsoft.com/p/xbox-gift-card-digi...

Or you can use any third party store like Amazon, Walmart, etc

If they're gift cards for the Microsoft Store (microsoftstore.com) then you should be able to use them. You would want to contact their customer support if you're having issues.

Otherwise, if they're Xbox gift cards, that currency can only be used for digital content from the Xbox store.

Hi Ammon,

Thanks for coming to the forums with your question about the gift cards. Microsoft gift cards and Xbox gift cards are for both Microsoft and Xbox.

This is directly from the
Microsoft gift card:

With a Microsoft Gift Card, give the freedom to pick the gift they want. It can be used to buy devices, games, software, apps, movies, and more. There are no fees or expiration dates to worry about. This digital gift code is good for purchases
at Microsoft Store online, on Windows, and on Xbox. It cannot be used for purchases at physical Microsoft Stores.

This is directly from the
Xbox gift card:

With an Xbox Gift Card, give the freedom to pick the gift they want. It can be used to buy the hottest new Xbox full game downloads, apps, movies, TV shows, devices, and more. There are no fees or expiration dates to worry about. This digital
gift code is good for purchases at Microsoft Store online, on Windows, and on Xbox. It cannot be used for purchases at physical Microsoft Stores.

If you are purchasing devices like Xbox console, surface pro they are limited to being used for them.

If you will be mainly using these on an Xbox console, then the Xbox gift card is perfect.

Thanks,

Brad

This page covers most of those details. Check the FAQ at the bottom.

The important parts would be

"Do gift cards expire?

No, gift cards purchased at retail never expire. Note that promotional gift cards like those from Microsoft Rewards or Xbox Live Rewards do expire."

"What is the difference between a Microsoft Gift Card and an Xbox Gift Card?

The cards work just the same. Once redeemed to your Microsoft account, you can spend your balance at Microsoft Store online, on Windows, and on Xbox."

"Where can I spend a gift card?

Once redeemed to your Microsoft account, your gift card balance is available to spend when you shop at Microsoft Store online, on Windows, and on Xbox. Gift cards do not currently work at physical Microsoft Stores."

Should cover you. One thing I'm not certain with is if "gift cards" can be used to pre-order physical goods. Might want to check with Microsoft Store support on that?